BofA Securities Downgrades Sea Ltd. (SE) to Neutral

BofA Securities analyst Sachin Salgaonkar downgraded Sea Ltd. (NYSE: SE) from Buy to Neutral with a price target of $160.00.

The analyst comments "We downgrade Sea to Neutral from Buy as we find risk-reward more balanced now after its strong outperformance. Sea’s stock is up 270% since Jan’24 (vs S&P 500 +18%/ NASDAQ +20%) on back of its improving fundamentals. Consensus currently is factoring in 1) 2025/26E E-com revenue growth of 25%/19%, EBITDA margin as % of GMV of 0.7%/1.2%; 2) Gaming revenue growth of 16%/10% for 2025/26E with small margin improvement and 3) DFS (Monee) revenue growth of 29%/24%. We think that these numbers adequately factor Sea’s momentum and see limited material upside in the nearterm – particularly in-light of a slowing macro. While we still remain positive on the fundamentals of the company, we think that going ahead, it may be difficult for Sea to consistently deliver “beat and raise” quarters."

For an analyst ratings summary and ratings history on Sea Ltd. click here. For more ratings news on Sea Ltd. click here.

Shares of Sea Ltd. closed at $145.82 yesterday.

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